Working Paper: NBER ID: w23323
Authors: Hunter Clark; Maxim Pinkovskiy; Xavier Sala-i-Martin
Abstract: Concerns about the quality of China’s official GDP statistics have been a perennial question in understanding its economic dynamics. We use data on satellite-recorded nighttime lights as an independent benchmark for comparing various published indicators of the state of the Chinese economy. Using the methodology of Pinkovskiy and Sala-i-Martin (2016a and b), we exploit nighttime lights to compute the optimal weights for various Chinese economic indicators in a best unbiased predictor of Chinese growth rates. Our computations of Chinese growth based on optimal weightings of various combinations of economic indicators provide evidence against the hypothesis that the Chinese economy contracted precipitously in late 2015, and are consistent with the rate of Chinese growth being higher than is reported in the official statistics.
Keywords: No keywords provided
JEL Codes: F0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| growth rate of nighttime lights (O44) | true income growth (O49) |
| true income growth (O49) | GDP growth (O49) |
| growth rate of electricity production (L94) | growth rate of nighttime lights (O44) |
| growth rate of bank loans (G21) | growth rate of nighttime lights (O44) |